Before leaving Fuuma village, Tobari had asked the others to destroy the Banten ninjutsu books that he has hidden at school. He also told them that the Kairoushu are probably busy trying to secure the remaining scrolls before the villages become defensive, so they should return to their normal lives for now. Raimei has been sent back to Banten as well to help protect Miharu. As for Tobari, he decided to walk home, so he’ll be arriving much later.
Back at school, Kouichi destroys the Banten ninjutsu books hidden at school. Raimei, who’s surprised that they’re stored there, asks if he’s destroying Banten’s kinjutsusho, “Engetsurin” (円月輪), as well, but Kouichi says that he doesn’t even know where it’s stored. Instead, he’s simply reminded that Tobari said it’s stored in a place where power should be stored. Meanwhile, Miharu is worrying about his eye and how his vision hasn’t returned, which makes him think that the Shinra Banshou may no longer reside in him.

Shortly after, Kouichi asks Raimei if she’s okay at a Tokyo school and wonders if her parents will worry about her, but she says she’s fine because she’s a tengai kodoku (天涯孤独) girl, (i.e. a person without relatives or friends). After figuring out what a tengai kodoku is, Miharu questions Raimei as to what Kouichi, Tobari, and him are to her then (questioning with: "Aren’t we friends?"), which seems to cheer up Raimei a bit after realizing Miharu's meaning. Embarrassed, Raimei takes off for a short while, during which she recalls how her older brother Raikou and her had received matching katanas named Gamon (我聞), which are handed down in the Shimizu family and embody the spirit of the samurai. At the time, their mother had also told them about the need to suppress the Shinra Banshou.

While walking Miharu home, Raimei worries about what Miharu would think if he found out that she’s only near him to find the Kairoushu. Upon arriving, Miharu finds a troubled Yamase-sensei, who asks him for help since he was cast aside by the Kairoushu. When Miharu says he can’t use the Shinra Banshou powers, Yamase cracks and attacks him because of some strange legend about obtaining the Shinra Banshou's wisdom through drinking the host’s blood. Miharu manages to run outside though, where Raimei and Kouichi ambush then interrogate Yamase.

Raimei, figuring out Yamase's allegiance with Kairoushu, questions him about the whereabouts of her brother Raikou, who had killed their parents and family before setting off in search for the Kairoushu. Yamase reveals to her that heonly ran into him around 5 years ago when the Jakushou Ryuuha (弱小流派) (lit. “Puny School”) gathered in search of the Kairoushu, but doesn’t know where he is now. Yamase then escapes, but not before telling Miharu that everyone that ever been around or close to him is only their to use him (including his allies), which troubles Raimei. Unaffected by his words, Miharu tells the others that the Shinra Banshou may no longer even be in him, but Raimei promises him that she won’t hide anything from him or betray him while she continues to look for her brother. Hearing this, Miharu chooses to believe her. (Kouichi on the other hand is moved to tears).

At Juuji’s house, Tobari has finished making some Irish braise* when a short old man claiming to be Tarou Zaemon (太郎 左衛門) (while revealing himself to be Fuuma Kotarou at the same time) comes along. Kotarou, Tobari, Saraba, and Juuji then discuss the information Kotarou has gathered. Based on the report, the Togakushi ninjas have hidden themselves as a small employee placement agency located at the heart of Nagano prefecture. In the Nabari world though, their wide-scale “business” ranges from a spy corporation to an international secret intelligence agency, and their leader appears to be a woman, disguised as the company president. Their kinjutsu is known as “Izuna Shingan” (飯綱心眼), i.e. “Fox Spirit’s Mind’s Eye”.

Hearing this makes Tobari realize how much they’ve already discovered, but Kotarou says that three ninjas died in order to make that report. When Kotarou shrugs off their deaths by saying there’s no reason to hold back now that the Kairoushu have used their Kira, Tobari questions his decisions. Saraba tries to calm Tobari at this point, saying that she understands how he feels, but agrees with Kotarou’s decision, as does Juuji. Infuriated at how lightly they treat lives, Tobari says that he’ll protect Miharu without killing anyone or getting anyone killed. These heroic views cause Kotarou to become hysterical, so he challenges Tobari to show to him how naïve he is. Kotarou finds out that Tobari’s best technique is his Kaiin Jutsu (解印術), a dispelling technique that requires the user to match his opponent’s jutsu speed, so he tells him to try dispelling his Henge no Jutsu (変化の術), (i.e. transformation techniques). During their “fight”, Kotarou says that if a single Banten ninja could already protect everyone, people wouldn’t be seeking the power of the hijutsu. Tobari then dispels some of Kotarou’s transformations, but he’s shocked at how quickly he can reform into a new one. In the process, Kotarou transforms to Raimei, Tobari himself, and then Miharu, while explaining Fuuma’s firm resolution to get things done. As Miharu, Kotarou makes an opening to knock Tobari out by saying, “if you don’t only think of me, I’ll end up hating you.” With Tobari on the floor, Kotarou tells him that his kindness alone will only make him lose everything someday.

Afterwards, Saraba takes Tobari back to Banten, and Kotarou recalls how he once shared Tobari's philosophy when he was younger. Back at Miharu’s house, Kouichi and Raimei are on the lookout while Miharu catches up to some homework, but both swiftly gets knocked out by none other than Yoite, leaving Miharu unguarded.

This is the first episode to be extensively different from its manga chapter. To name just one thing, the teacher Yamase makes his first --and last-- appearance in the manga here, though he's been a minor villain in the anime since ep. 1.

Tobari's background is Irish, and he proudly states that he is cooking the "Durandal Family Irish Braise", a rich stew of beef shoulder and vegetables slow-cooked in Irish stout--dark, roasted malt beer.